NFT hype clearly dies as daily sales drop to one-year low in June 2022

non-fungible tokens (NFT) is in the spotlight in 2021 as artists, influencers, A-list celebrities and the sports industry finally meet a fan engagement tool that allows the public to profit from their success. However, the hype surrounding NFTs did not take hold as sales plummeted to a one-year low. The relentless bear market of 2022.

The NFT boom that started in early 2021 continues into May 2022 — supported by a healthy and bullish crypto ecosystem and positive investor sentiment. However, Bitcoin’s (bitcoin) Struggling to maintain its all-time high price Adversely affects the entire crypto ecosystem.

The number of daily NFT sales between June 2021 and June 2022. Source: NonFungible

The NFT ecosystem recorded its worst performance of the year in June 2022, with daily sales falling to around 19,000 transactions worth an estimated $13.8 million — a figure that was recorded as early as June 2021.

Last year, however, a similar number of daily sales of NFTs were considered impressive as the nascent ecosystem saw mainstream implementation across a variety of use cases.

NFT market capitalization and trading volume. Source: NFTGo

as proven data The NFT ecosystem from nonfungible.com saw the highest daily sales of NFTs on September 24, 2021, reaching 224,768 units worth $78.3 million. However, the largest dollar-denominated transaction occurred on May 1, 2022, when 118,577 NFTs were sold for $780.4 million that day.

Some of the key factors that negatively impacted NFT hype were the drop in Ether (Ethereum) prices, insufficient secondary market demand and unrealistic gas fees.As a result, over the past three months, NFT market capitalization has fallen by nearly 40%, while losing more than 66% of its trading volume, as shown in the chart below data From NFTGo.

related: NFTs will appear on Facebook cross-posting with Instagram as Meta Web3 expansion continues

In a bear market, cryptocurrency entrepreneurs, including Changpeng “CZ” Zhaois helping Governments explore NFT use cases in identifying citizens. Social media giant Meta’s Facebook also recently announced plans to support NFTs for creators.

A Meta spokesperson revealed that the rollout of NFTs on Facebook will be gradual, starting with select creators in the US.